Stokes makes pitch for media merger

Newspapers are a sunset industry that must embrace technology to survive, according to
Kerry Stokes
.

The media mogul addressed a business breakfast in Perth on Thursday morning, where he laid out his vision for a “new information age“ and made a determined pitch to sell the merits of a proposed tie-up between his Seven Group and West Australian Newspapers.

Mr Stokes said the heavy investment in digital technology by his
Seven Media Group
at the turn of the century was derided at the time by analysts, who wanted the network to cut costs.

“We weren’t about weeding the garden, which is what cutting costs is about, we wanted to create a new landscape," he said.

Mr Stokes said the trouble the ABC was having at the moment introducing a single content desk was proof Seven had taken the right decision to embrace technology early.

Fellow media tycoon
James Packer
was a surprise attendee at the breakfast, reinforcing the close relationship the two have forged.

Mr Packer abruptly quit the board of
Ten Network
earlier this month, following a spat with fellow director and shareholder
Lachlan Murdoch
over the appointment of Seven Media Group’s chief sales and digital officer,
James Warburton
, as Ten’s chief executive.

Mr Packer is said to have argued Mr Warburton lacked the experience to run a television network, but was also concerned with how poaching Mr Warburton would affect his business relationship with Mr Stokes.